Policy setting for access to large-scale medical equipment: International medical device giants launch peer-to-peer mergers and acquisitions

On May 11, 2016, Jiangxi Pharmaceutical Procurement Service Center issued the “Notice on Reporting the Purchase Information of Large Medical Equipment”. Require relevant suppliers to submit information about Class B large-scale medical equipment (CT, MRI, DSA, SPECT, LA, color ultrasound, etc.) to be sold in public medical institutions in Jiangxi Province. The catalogue of medical equipment procurement information is updated annually in principle.

Comments:

1. Requirements As of the end of May, those that have not been submitted within the time limit will not be included in the catalogue of medical equipment procurement information in Jiangxi Province. The move is that Jiangxi Province uses administrative means to control and control large-scale medical equipment of Class B into public hospitals. Suppliers and equipment that are not in the catalogue cannot enter public hospitals in Jiangxi Province.

2. The supplier must promise that the purchase price of the medical equipment submitted is the lowest and second lowest price of the model sold in China, accompanied by a copy of the winning bid (or sales contract) and a letter of commitment. The move requires the price to be the lowest in the country, aiming to greatly reduce the purchase price of large medical equipment in public hospitals in Jiangxi Province, and back up the profit margin of suppliers. Policy: The state has formulated a large-scale medical equipment configuration plan, prohibiting medical institutions from arranging large-scale medical equipment

The 2016 Medical Device Supervision and Administration Regulations Amendment (Draft for Review) stipulates that “medical device users shall scientifically allocate and rationally use large-scale medical equipment according to factors such as functional positioning and medical technology level. The state has formulated large-scale medical equipment allocation plans, Large-scale medical equipment shall be subject to hierarchical configuration permit. The configuration of large-scale medical equipment shall conform to the configuration plan, and shall have appropriate technical conditions, use capabilities, supporting facilities and professional technicians with corresponding qualifications. Medical equipment must be approved by the competent department of health and family planning of the people's government at or above the provincial level and obtain the configuration permit before it can be configured. The administrative items for the management and management of large-scale medical equipment shall be separately formulated by the competent department of health and family planning of the State Council in accordance with these Regulations."

International medical device giants launch peer-to-peer mergers and acquisitions

Comments:

The state plans to formulate a large-scale medical equipment configuration plan, and implements a hierarchical allocation permit for large-scale medical equipment according to the items. Procurement of large medical equipment requires a configuration license. In the draft for review, the penalties were clearly stipulated for the act of mismatching and the provision of false information. The state strictly controlled the procurement of large-scale equipment to prevent the change from “medicine-based medicine to medical treatment”. Industry Abbott will acquire St. Jude for $25 billion

Abbot will acquire St. Jude Medical for $25 billion. Abbott agreed to exchange $68.75 in cash plus 0.8708 shares for one share of St. Jude. After the merger, the two companies' cardiovascular business sales were approximately $8.7 million. The integration will combine St. Jude's strengths in heart failure treatment devices , cardiac catheters and defibrillators with Abbott's strengths in coronary intervention and valve repair to enhance the placement of both medical devices in the heart and nervous system. This is the largest acquisition in the history of Abbott's mergers and acquisitions. In recent years, international medical device giants Medtronic and Johnson & Johnson have also made the largest acquisitions in recent years.

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